The Current AWS Free Tier - $200 in Credits and the Free Plan Compared with Other Clouds
The AWS Free Tier moved to a credit-based model in July 2025: up to $200 in credits, a free plan of up to 6 months, and Always Free offers. Learn how the current system works, how it differs from the legacy 12-month tier, and how it compares with Azure and GCP.
The Current AWS Free Tier - Credit-Based Since July 2025
The AWS Free Tier was overhauled on July 15, 2025, and is now credit-based. New accounts receive $100 in credits at sign-up and can earn up to $100 more by completing activities that explore key services, for a maximum of $200 (as of August 2026). At account creation you choose between a free plan and a paid plan. The free plan covers the main services, while some services that would burn through the credits quickly, as well as hardware purchases, fall outside its scope. The account closes automatically when the credits run out or 6 months pass, whichever comes first; you are not billed unless you upgrade to the paid plan. The paid plan uses regular pay-as-you-go pricing with the same credits applied. Structurally preventing surprise bills is the biggest difference from the old system.
The Legacy 12-Month Free Tier Applies Only to Accounts Created Before July 15, 2025
Accounts created before July 15, 2025 keep the legacy structure of 12-month free offers, Always Free, and short-term trials. The legacy 12-month tier included 750 hours per month of EC2 t2.micro / t3.micro, 5 GB of S3 Standard storage, and 750 hours per month of RDS db.t2.micro / db.t3.micro (coverage varied by Region). New accounts created after the change simply do not have this 12-month layer. Many tutorials on the web still assume the old system, so keep in mind that which system applies depends on when the account was created.
Always Free Continues Under the Current System
Always Free allowances, such as 1 million Lambda requests per month, 25 GB of DynamoDB storage, and 1 million SNS publishes per month, continue to exist under both the free and paid plans. More than 30 services are covered; usage beyond the monthly allowance is billed pay-as-you-go on the paid plan and automatically drawn from credits on the free plan. For learning serverless architectures or running small always-on workloads, the free allowances alone still go a long way.
Comparison with Azure Free Tier
Azure's free tier has a three-layer structure: 12-Month Free, Always Free, plus a $200 credit valid for 30 days upon initial registration. While this appears generous at first glance, the $200 credit expires after 30 days, requiring careful planning to use it effectively. The 12-Month Free tier includes a B1S VM for 750 hours per month and 5 GB of Blob Storage, roughly matching AWS's legacy 12-month tier (new AWS accounts no longer have this layer). In the Always Free category, Azure Functions offers 1 million requests per month (matching Lambda), but Cosmos DB's free tier is limited to 1,000 RU/s and 25 GB, which can be more restrictive than DynamoDB's free tier in throughput-sensitive scenarios. Additionally, availability of free tier offers can differ by region, so check whether the services you plan to use are offered in the region you intend to work in.
Comparison with GCP Free Tier
GCP offers a $300 credit valid for 90 days along with an Always Free tier (all figures in this section are as of August 2026). The $300 credit is more generous than Azure's $200 and has a longer validity period of 90 days, making it more practical for serious evaluation. However, looking at the Always Free scope, while Cloud Functions offers 2 million invocations per month (exceeding Lambda's 1 million), the Compute Engine e2-micro instance is limited to one per month in US regions only. Cloud Storage provides 5 GB and Firestore 1 GB, a relatively modest set of storage free tiers. GCP's free tier tends to be generous for AI/ML services, with BigQuery offering 1 TB of query processing per month and Vision AI providing 1,000 units per month, making it well-suited for getting started with data analytics and machine learning. However, for learning general-purpose cloud infrastructure, AWS provides more balanced service coverage.
Usability as a Learning and Testing Environment
When learning cloud computing or preparing for certifications, the usability of the free tier is a critical factor. AWS's official hands-on tutorials are designed to work entirely within the free tier, and integration with AWS Skill Builder and official workshops is well-developed. The fact that most services covered in Solutions Architect and Developer certification exams can be practiced hands-on within the free tier is a significant advantage for learners. Azure also has strong integration with Microsoft Learn, but there can be differences between sandbox environments and actual Azure subscription behavior. GCP provides temporary projects through Qwiklabs (now Google Cloud Skills Boost), but free tier limitations can affect continuous experimentation in your own account. Because AWS lets you learn in the same environment as production rather than in a sandbox, the operations you practice carry over directly into real work.
Tips for Safely Using the Free Tier
The most important thing to watch out for when using the free tier is unintended charges. AWS lets you set up Budgets for free and monitor free tier usage through a dashboard. Setting a zero-dollar budget alert notifies you when you're about to exceed the free tier. Using AWS Organizations to isolate sandbox accounts and applying Service Control Policies (SCPs) to restrict expensive services is also effective. Under the current system, the free account plan closes automatically once credits run out or 6 months pass, and it never starts charging on its own. If you use the legacy 12-month free tier on an account created before July 15, 2025, watch its expiration and set a calendar reminder.
Summary
As of the July 2025 overhaul, the AWS Free Tier consists of up to $200 in credits, a free plan lasting up to 6 months, and Always Free allowances. A free plan that structurally cannot generate surprise bills is a major step forward for cloud beginners. Azure offers a $200 credit (30 days) and GCP a $300 credit (90 days); on credit amount and duration alone GCP is the most generous, while AWS's strengths are the breadth of Always Free and its integration with learning content. Learning the basics on the free plan and upgrading to the paid plan only when needed is the sensible path under the current system.
References (Official AWS Resources)
The primary sources for this page are the official AWS website and documentation. Check the official pages below for the latest specifications and pricing.
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